Nash equilibrium Essays
Games Theory Essay
In game theory, Nash equilibrium (named after John Forbes Nash, who proposed it) is a solution concept of a game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only his own strategy unilaterally. If each player has chosen a strategy and no player can benefit by changing his or her strategy while the other players keep theirs unchanged, then the current set of strategy..
A Public Firm in a Vertically Linked Spatial Duopoly
A Public Firm in a Vertically Linked Spatial Duopoly with Price Discrimination
We show that, in a vertically connected duopoly where neither firm can produce all types demanded, spatial competition between a public and private firm induces those to deviate from the socially perfect location. We identify specific conditions under which a change in the degree of privatization induces one organization to move toward, as the other moves away from, the socially optimum location...
Game theory can help us understand organizations interactions
How can game theory help us to understand firms' interactions? Discuss the dissimilarities between quantity and price competition.
Part I. Introduction
Game theory analysis is a good tool to review the behaviour of firms in oligopolistic markets- the fundamental economic problem of competition between several firms. In this article I will concentrate on two of the very most notorious models in oligopoly theory; Cournot and Bertrand. Within the Cournot model, organizations..